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Key Takeaways
- CryptoQuant urged Strategy to pause Bitcoin purchases on June 23, but Strategy had already pivoted to cash-building two weeks prior.
- Strategy’s annualized dividend obligations have nearly quadrupled to $1.2 billion in 2026, while its STRC preferred stock hit a record low of roughly 17.5% below par.
- CryptoQuant estimates Strategy’s reserve must reach $2.8 billion, nearly double its current $1.4 billion, before STRC can recover.
CryptoQuant published a report on June 23 urging Strategy to pause Bitcoin purchases and rebuild its cash reserves, two weeks after Strategy had already begun doing so, according to the company’s public purchase disclosures.
CryptoQuant Flags Rising Obligations and a Shrinking Reserve
In its June 23 report, CryptoQuant said Strategy’s annualized dividend obligations have nearly quadrupled to $1.2 billion in 2026, while its U.S. dollar reserve fell 38% over the same period.
“The company’s strategic priority should be to pause Bitcoin purchases and rebuild its cash reserve,” CryptoQuant analyst Julio Moreno stated.
The firm pointed to the performance of STRC, Strategy’s variable-rate preferred stock, which it markets as a stable instrument near $100. STRC slid to $82.50 in the week of June 16, a record low of roughly 17.5% below par. CryptoQuant calculated that the decline cut dividend coverage from more than seven years to approximately 14 months.
The reserve stood near $2 billion before May, when Strategy spent about $1.5 billion buying back convertible notes due in 2029. CryptoQuant also argued that selling Bitcoin to replenish the reserve would be counterproductive, noting that Strategy carries a $10.6 billion unrealized loss, with Bitcoin trading below the company’s average cost basis of approximately $75,000.
Strategy Bought 520 Bitcoin the Week the Warning Landed
Strategy’s weekly purchase disclosures show the pivot preceded the report. In the week of June 22, the company bought just 520 Bitcoin for approximately $35 million. That same week, it raised $335.5 million through common stock sales and routed $300 million of those proceeds into its reserve, lifting the balance to $1.4 billion.
The week before, Strategy purchased 1,587 BTC but still directed most of its capital raises toward cash. Across both weeks, the company was selling more stock than it was deploying into Bitcoin. Strategy has characterized the cash build as a measure to protect the credit quality of its preferred shares.
STRC Recovery Requires Reserve Nearly Double Its Current Level
Bitcoin’s spot price was near $62,534 at the time of publication, down approximately 2.5% on the day, keeping Strategy’s treasury underwater. CryptoQuant said the reserve must reach approximately $2.8 billion, representing 24 months of dividend coverage, before STRC can recover. At $1.4 billion, Strategy is roughly halfway to that threshold.
Strategy is not required to sell Bitcoin to defend STRC. It can raise the instrument’s 11.5% dividend rate or issue additional MSTR common stock.
Strategy has already raised capital through MSTR common stock sales and has not disclosed a timeline for reaching the $2.8 billion reserve threshold CryptoQuant identified as the level needed for STRC to recover. CryptoQuant said the reserve must reach approximately $2.8 billion before STRC can recover.
